The share price of Precious Shipping Public Company Limited (SET: PSL) closed 3.49% lower at Bt16.60 per share on Tuesday, December 14, 2021, as the analyst expected limited downside to the issue regarding the arrest of 22 Thai crew members on board M.V. Chayanee Naree in Nigeria that also included three of PSL’s crews.
Yesterday evening, PSL made a further update on the news regarding the arrest of 22 Thai crew members on board M.V. Chayanee Naree in Nigeria to the Stock Exchange of Thailand (SET), with the details as follows:
On 8 December 2021, the National Drug Law Enforcement Agency (NDLEA) of Nigeria filed a charge in the High Court of Nigeria against the vessel and three crew members (and 9 unrelated persons who are not working for the company) for alleged unlawful transport of drugs. However, it should be noted that, thus far, there is no supporting evidence given by NDLEA for the charges, which demonstrate any link between the vessel, the three crew, and drug smuggling. As such, the company has full confidence in its case and that it would be able to prove its innocence, and therefore, is working closely with its insurance company and legal counsel to ensure that the case is fully resolved as early as possible.
Due to the said charges, the vessel and the three crew members against whom charges have been filed are required to remain in Nigeria. However, the company is in the process of applying for bail for the vessel and these three crew members.
There are no charges against the other 19 crew members on board the Vessel, the company, or the owning company of the vessel. The 19 crew members have been detained on board the vessel by armed Nigerian Navy soldiers for the last two months. The company is making every effort to release them from detention and to allow them to leave Nigeria.
Following the announcement of PSL, Maybank Securities (Thailand) (MST) expected the charge against three crew members will have only 0.18% impact to PSL per month and in a worst case scenario of missing one operating vassel, the impact will be around 2.2% to 2022 estimated profit of 3.9 billion baht or 0.18% per month.
Moreover, MST stated that the economic stimulus from China will return through a tapering of RRR. After the Winter Olympic and Chinese New Year, MST expected demand from China to recover strongly and significantly.
MST gave a speculative-buy recommendation for PSL with a target price at Bt18.60 per share.
